Leading the Way: Technology Solutions for Today’s Banks

Today’s high-risk business environment requires banks to develop and maintain a strong technology infrastructure and directors to focus increasingly on technology issues. The invisible system of data, networking, and firewalls that brings customers’ information together in a seamless symphony is often their only point of contact with your organization. Streamlining technology solutions and anticipating future risk calls for continual review of IT strategies. This, in turn, allows the bank to offer premier customer service and remain competitive, while watching the bottom line and meeting business objectives.

Now, more than ever, boards across the country are faced with issues concerning technology and technology risks–from data security and privacy rights to data retention and recovery. While technology may seem outside the day-to-day realm of a board’s responsibility, the Gramm-Leach-Bliley Act prompted new banking standards that bring these issues to the table. The new rules require that the board or a designated committee approve the bank’s information security program and receive regular reports on its status.

In her extensive work with boards, Marilyn R. Seymann, president and CEO of M One Inc., a Phoenix-based consulting firm, has developed a list of questions that all directors should be asking of management in the areas of technology strategy, information security, disaster recovery, and website compliance. For example: How does your bank stack up against competitors in the deployment of technologies and delivery channels? Is your CIO prepared to tackle the expanding role that IT plays in your bank? Does your bank have a clear picture of its existing technology infrastructure and is there a plan for system enhancements?

Questions such as these provide a backdrop for the information presented in this supplement. We hope these articles will help board members consider how technology provides a stalwart infrastructure that can reduce risk for both the company and the customer, and add value to the bottom line. |BD|

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